Ribba/interest

1 ANSWERS

1. amomipais82
   

   Hi,
   interest is definitely prohibited. This means that purchasing homes on conventional mortgages is not permitted in Shari’ah. However, in considering the case from all its aspects, the conference on Islamic Fiqh in North America held in Detroit in the Fall of 1999 resolved:
   1) That Muslims are required to create financial institutions that provide Islamically permitted contracts to satisfy house and other financing needs.
   2) Until that goal is achieved, they should try to convince conventional financing institutions to provide Shari’ah permitted financing contracts.
   3) If both 1) and 2) are not available in a way that satisfies the needs of Muslims in North America, those families that have important considerations of providing shelter, security and safety, reasonable environment, acceptable levels of schooling, etc have pressing needs that applies to a substantial segment of the Muslim population. This is called in Shari’ah a public need (Hajah ‘amah). A Hajah or a need when it becomes public it deserves a treatment of a necessity in accordance with the fiqh axioms of Shari’ah. Therefore, in those cases the hardship must be removed by relaxing the prohibition. This means that although this is not a life and death necessity it is treated as if it were a necessity. Muslims who do not have the 20% that is required by some Islamic financial institutions and those who needs cannot be satisfied by the very small and few Islamic institutions operating in North America may apply this fatwa if they can be covered by the considerations of public need as mentioned above.

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